If the Desired Reserve Ratio Is 15 Percent and Chartered

question 151

Multiple Choice

If the desired reserve ratio is 15 percent and chartered bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired demand deposits, then the relevant money multiplier for the banking system will be:

• A)5
• B)4
• C)3
• D)10

---

Definitions:

Irrational Beliefs

Faulty thinking patterns that are unrealistic or illogical and often cause emotional distress or unhealthy behaviors.

Rational Beliefs

Beliefs that are logically consistent and based on factual evidence, often emphasized in cognitive-behavioral therapies to counter irrational thoughts.

Activating Events

Situations or events that trigger emotional or behavioral responses, a key concept in cognitive-behavioral therapy.

Cognitive-behavior Therapy

A form of psychological treatment that helps individuals understand the thoughts and feelings that influence behaviors, aiming to teach coping strategies for dealing with different problems.